Variable cost per unit ________.
A. varies when output varies
B. remains constant
C. increase when output increases
D. decreases when output decreases
Answer: Option B
Solution(By Examveda Team)
Variable cost per unit remains constant. Variable costs are the costs that change in total each time an additional unit is produced or sold. With a variable cost, the per unit cost stays the same, but the more units produced or sold, the higher the total cost. Direct materials is a variable cost.Join The Discussion
Comments ( 1 )
Related Questions on Costing
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variable cost are very with production of units. if No. of units increases variable cost will be increases and vise versa. so you need to change option. option B is not correct.
thanks